Safari File Edit View History Bookmarks Window Help ezto.mheducation.com M6-9 Re

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Safari File Edit View History Bookmarks Window Help ezto.mheducation.com M6-9 Recording Journal Entries for Sales and Sales Discounts ILO 6-4] Merchandise costing $1,500 is sold for $2,500 on terms 2/10, n/30. If the buyer pays within the discount period, prepare the jourmal entries needed at the t time of sale and collection, assuming the company uses a inventory system. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the sales on account of $2,500 on terms 2/10, n/30. Note: Enter debits before credits ransactio General Journal Debit Credit Record entry Clear entry View general journal 6

Explanation / Answer

Solution:

At the time of sale

Accounts Receivable ..................$2,500

Sales Revenue ................................. $2,500

Cost of goods sold .................. $1,500

Inventory .......................................... $1,500

At the time of collection

Cash ...........................$2,450

Sales discounts ...........$50

Accounts receivable ........................$2,500

Cash = $2,500 x 0.98 =

Sales discount = $2,500 x 0.02 =

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